'Open Source Infrastructure - A Manifesto for the Coming Big Bang' Deutsche Banc Alex. Brown's Phil Rueppel Publishes Research Report

Jan 11, 2001, 00:00 ET from Deutsche Banc Alex. Brown

    SAN FRANCISCO, Jan. 11 /PRNewswire/ -- Deutsche Banc Alex. Brown equity
 research analyst Phil Rueppel today published an industry report, "Open Source
 Infrastructure -- A Manifesto for the Coming Big Bang."  Additionally,
 yesterday he expanded his coverage of the Linux Market industry by initiating
 coverage of Red Hat, Inc. (Nasdaq : RHAT) with a BUY rating ($7.0).
     In his report focused on Open Source technologies, Rueppel outlines:
     *     the market opportunities;
     *     a comparison of the traditional business models in the IT industry
           and the Open Source model;
     *     several probable success scenarios of the Open Source model;
     *     shortcomings and strengths of Open Source solutions;
     *     the impact of Open Source on the IT industry landscape;
     *     Open Source products and services;
     *     and the profiles of 2 public companies and 29 private companies.
     "Linux and other Open Source technologies continue to demonstrate the
 characteristics of strong growth, increased customer penetration, and
 disruptive change -- all factors that create investment opportunities in our
 view," said Rueppel.  "We believe that as Open Source moves from the early
 adopter internet-centric customers towards adoption by the corporate
 mainstream -- a trend that we are currently seeing -- the vendors focused on
 the segment will be the winners both fundamentally and in the stock market."
     His positive opinion on Open Source technologies is based on the following
 key investment themes:
     *     the IT industry's prevailing software development model is
     *     the Open Source development model can be a "better mousetrap" to
           address enterprises' IT needs
     *     the Open Source model could lead to significant disruption of the IT
           industry landscape
     *     Open Source companies can develop profitable business models by
           leveraging Open Source to deliver "single stack" IT solutions
     *     Linux is the ultimate proof-point that the Open Source model can
           succeed; Linux has quickly emerged as the only other viable
           computing platform alongside Sun Microsystem's (SUNW) Solaris and
           Microsoft Corporation's (MSFT) Windows2000
     Deutsche Banc Alex. Brown identifies the US investment banking activities
 of DB Alex. Brown LLC and Deutsche Bank Securities Inc., which are indirect
 subsidiaries of Deutsche Bank AG. With over EUR995 billion in assets as of
 September 30, 2000 and approximately 95,000 employees, Deutsche Bank offers
 its clients unparalleled financial services throughout the world.  It ranks
 among the leaders in asset management, capital markets, corporate finance,
 custody, cash management and private banking.  Deutsche Bank is divided into
 five major business units: Global Corporates and Institutions, Global
 Technology and Services, Asset Management, Corporates and Real Estates and
 Private and Retail Banking.
     Deutsche Bank Securities Inc. maintains a net primary market in the common
 stock of Red Hat, Inc.  The following stock(s) is (are) optionable: Red Hat,
     Information herein is believed to be reliable and has been obtained from
 sources believed to be reliable, but its accuracy and completeness cannot be
 guaranteed. Opinions, estimates, and projections constitute our judgment and
 are subject to change without notice. This publication is provided to you for
 information purposes only and is not intended as an offer or solicitation for
 the sale of any financial instrument. Deutsche Bank Securities Inc., DB Alex.
 Brown LLC, and their affiliates worldwide, may hold a position or act as
 market maker in the financial instruments of any issuer discussed herein or
 act as advisor or lender to such issuer. Transaction should be executed
 through a Deutsche Bank entity in the client's home jurisdiction unless
 otherwise permitted by law. Deutsche Bank Securities Inc., and DB Alex. Brown
 LLC, are members of NYSE and NASD. In the U.S. this report may be distributed
 either by Deutsche Bank Securities Inc., or DB Alex. Brown LLC.  Interested
 parties are advised to contact the U.S. entity they currently deal with, or
 the U.S. entity that has distributed this report to them.

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